USDJPY sets up for a break and run? What levels to eye.

Range is compressed in London (31 pips).

The USDJPY trended higher yesterday, mostly helped by the report of the secret China/North Korean meeting that took some geo-political/nuclear risk off the table  That in turn took some of the “flight into the JPY trade” out of play.

Technically, the price did move above a trend line (see green circle 4) and a swing area (see red circles at 106.63-747).  However, today has seen, the price moved back below that swing area. 

The fall back lower, retested the broken trend line and corrected into the swing/ceiling area.  We trade between that support and resistance area.  Traders are looking for a break. 

The range today is only 56 pips, and the London range is even more compressed at 31 pips. That may be a precursor to a bigger move before London/Europe break for the long weekend. Be aware.

Stocks are getting ready to open. Yesterday, the market ignored the stocks for the most part.  Is the market interested in breaking and running before the weekend?  The levels are set and will be eyed by traders.